TaxTMI 
TaxTMI 
2005 (5) TMI 586
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.... and Writing Paper, Craft and Wrapper. The issue in the present appeal is the correct classification of Newsprint cleared by the appellants. The appellants removed the newsprint in Reels at NIL rate of duty as applicable under Chapter Sub-heading 4801.00 of the Central Excise Tariff Act, 1985. Chapter Sub-heading 4801.00 reads as "Newsprint in rolls or sheets". According to the Revenue, 'Newsprint in rolls or sheets' only is covered under CSH 4801.00. To put it differently, Newsprint in forms other than rolls or sheets are not covered under this Heading. Revenue held that Newsprint cleared by the appellant in Reel form would be classified under 4823.90 of CET and is chargeable to Central Excise Duty at the rate of 16% ad valorem. Show Cause....
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....nd (b) manufactured by a manufacturer of newsprint specified under Schedule I of the Newsprint Control Order, 2004 and supplied against a purchase order placed upon such manufacturer by a newspaper which is registered by the Registrar of Newspapers for India under the provisions of the Press and Registration of Books Act, 1867 (25 of 1867). The newsprint manufactured by the appellants satisfies the above points. (iii) For several decades, classification of newsprint, whether or not wound around cores, was accepted under tariff heading 48.01. The Chandigarh Collectorate, for the first time, in the case of M/s. ABC Paper Mills Ltd., classified the Newsprint under the residuary entry 4823.90. The Newsprint Manufacturers Associat....
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.... 4-6-2004 Newsprint cannot be classified under 4823. It can only be classified under 4801. Proceedings dropped. 2. Madurai Shree Hari Krishna Paper Mills, Nallur and 6 others. 01/2005, dt. 3-10-2005 Dropped all proceedings initiated under Show Cause Notice. 3. Cochin M/s. Hindustan Newsprint Ltd. 35/2005, dt. 31-8-2005 -do- (v) In Notification No. 4/2006, Sl. No. 92, the description is "newsprint in reels". Against the above description, Chapter Heading 48.01 is mentioned. This sets at rest the controversy. It is not open to the department to contest the classification issue any longer in view of the above amendment. The only reason given for adopting a different classificati....
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.... it is wound on itself or on a core. (vii) The Commissioner has relied on out-dated ISI norms of 1986, which stand replaced by the 1999 standards. Reliance on tribunal's decision in the case of Shanthilal Doshi Pvt. Ltd. v. CCE - 1991 (56) E.L.T. 263 (T), which is based entirely on the IS standards of 1986, is misplaced. (viii) No proper reasons have been given for adopting the residuary entry 4823.90. It is well settled law that application of residuary entry has to be made with extreme caution and the same would be attracted only when no other provision, expressly or by necessary implication, applies to the goods in question. The following case-laws were relied on :- (a) Western India Plywoods ....
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....CE, Madras & Anr. - 1987 (32) E.L.T. 279 (Mad.). 5. We have gone through the records of the case carefully. The issue before us is the correct classification of 'Newsprint in reels' cleared by the appellants. The competing entries are :- Heading Sub-heading Description of goods Duty Rate 48.01 4801.00 Newsprint, in rolls or sheets Nil 48.23 Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres 4823.10 4823.20 4823.40 4823.90 ---- ---- ---- Other 16% The Adjudicating Authority has taken a firm stand that CH 48.0....